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Exclusive distributors-Anti business?

Discussion in 'Biashara, Uchumi na Ujasiriamali' started by Kimweri, Mar 10, 2010.

  1. K

    Kimweri JF-Expert Member

    Mar 10, 2010
    Joined: Apr 16, 2008
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    For many Tanzanian Entrepreneurs exclusive distributors,is one head-ache that you have to go over before ever thinking of becoming successful,or otherwise you should bend and adhere to this monopoly practice that early business adopters in TZ decided.

    The most common sightings of this habit to monopolize everything good can be seen in many international companies working/represented in Tanzania,HP,NISSAN,TOYOTA,FIRESTONE,SAMSUNG and many others.all of these companies are represented in Tanzania by either 1 or very few "exclusive distributors".

    while i applaud this "exclusive distributors" for their early initiative to open business doors in Tanzania,i at the same time blame them for most of Trade problems facing Tanzanian entrepreneurs

    In a world where business has become so integrated it is only in Tanzania and few other monopolistic countries where you will see some one company granted rights to sell something to the whole country.that is just insane.in US they have anti-monopoly laws,same as in EU.

    In Tanzania we have the likes of DT DOBBIE,Quality Group etc monopolizing every single distribution channel you can think of.

    the out come is beyond realistic prices of almost everything,new cars in TZ are sold at twice their worldwide pricing,new electronics,tires,construction material,etc are all priced way above the MSRP,and our government does not even care.

    While some guys might come out and say,oh..,free trade,free market.same people should remember that even in the US.where the markets are the freest you can't have the level of unregulated markets seen in TZ.

    of course our young entrepreneurs have revolted and decided to go to far east to seek the manufacturers,OEM themselves,due to lack of trade protection most of them have come back empty ended or disappointed.

    few who succeeded decided to flood the markets with below par products to recover for losses in investment acquired through dealing with third parties.

    my question is,why do we need exclusive distributors in a country that preaches free market and capitalist economy?why is it s hard for our regulators to clamp down these exclusivity deals?is there anyone in-charge of business regulations in TZ?what are they doing?
  2. The Boss

    The Boss JF-Expert Member

    Mar 10, 2010
    Joined: Aug 18, 2009
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    tatizo la nchi hii
    siasa,viongozi wetu wengi
    hawana hata idea kuhusu the world of enterprenuership..
    hawajui hata sheria za kuweka
  3. K

    Kimweri JF-Expert Member

    Mar 10, 2010
    Joined: Apr 16, 2008
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    Kwa miaka nenda rudi sasa sekta muhimu TZ zilikuwa zinashikiliwa na wazee(nyerere generation).Vijana waliwalaumu kama Rigid and the lacked exposure.

    Sehemu nyingi Muhimu sasa zinashikiliwa na Middle aged Tanzanians,i.e <50 years old,hawa kwa mtazamo wangu ni wale waliotumia miaka mingi wakilaumu system mbovu.what are they doing now?

    i believe in powers of TIME,i always give people,thing TIME,but with my dear country it seems even time will never heal it.wanatoka wehu wanaingia wendawazimu,day in day out.